Several law firms have initiated investigations into Sportradar Group AG (NASDAQ: SRAD) following a report from Muddy Waters Research that alleged the sports data company has been involved in illegal gambling. The news sent the company’s shares down by more than 22%, prompting investor rights law firms like Rosen Law Firm, Kessler Topaz Meltzer & Check, and Kaplan Fox to announce they are looking into potential securities claims on behalf of shareholders.
The allegations center on a report published by Muddy Waters Research on April 22, 2026, titled, "Sportradar AG: Putting the BET into Aiding and Abetting". The report claims that Sportradar “has actively aided and abetted illegal gambling across the world's black and grey markets – not as an accident or an oversight, but as a business strategy.”
On the day the Muddy Waters report was released, Sportradar's stock price fell $3.80 per share, or 22.57%, to close at $13.04. The report alleges that Sportradar knowingly served customers operating in jurisdictions where online gambling was illegal, and claims to have found "evidence of direct connections between numerous illegal and nefarious operators and [Sportradar]."
The investigations by the law firms could lead to a class-action lawsuit against Sportradar, seeking to recover losses for investors who purchased the company's securities. These firms are now encouraging investors who suffered significant financial losses to come forward. The core of the potential legal claims is the assertion that Sportradar may have issued materially misleading business information to the public.
The Muddy Waters report specifically documented nearly 50 Sportradar clients allegedly operating illegally, including sportsbooks in Russia and Southeast Asia. The sharp stock decline and subsequent legal scrutiny represent a significant challenge for Sportradar, questioning the company's compliance and risk management practices. Investors will be closely watching for the company's official response to the allegations and the outcome of the legal investigations.
This article is for informational purposes only and does not constitute investment advice.
